Proposed proxy voting rule seeks greater transparency (IGNITES)

A proposed SEC rule would offer investors more ease of access to how firms are voting on proxy proposals by requiring information disclosed by firms to be standardized. The proposed rule, in theory, should create greater transparency around proxy votes so investors can readily compare votes across funds. According to Amy Lynch, FrontLine’s Founder and President, the proposed rule could lead to more investors paying attention to proxy votes, and in turn, result in better voting practices. Ms. Lynch adds that with greater information at hand, investors may exert more shareholder pressure on managers to recall unpopular votes. See IGNITES (subscription required), “Proposed SEC Rule Could Create Social Media Headache”